How to Choose a Commercial Appraiser
There are many commercial appraisers these days, but choosing the right one for you can be tough. After all, they’re not all the same. So what’s a smart way to choose?
1. Define your need.
First things first, define your need. Property tax disputes? Company expansion? Company investment? Different appraisers specialize in different areas.
2. Check qualifications.
According to the Internal Revenue Service (IRS), regardless of an appraiser’s licensure or certification, he must be “Qualified,” meaning he has to conduct appraisals as his primary profession.
3. Interview potential appraisers.
When you interview prospective appraisers, your main goal must be to determine when they are qualified. That means you should ask for their CV and verify their listed experience. Also ask for some of their latest work samples to prove their industry knowledge and competence. In addition, know what methods they use in their appraisals.
Pick an appraiser who has the patience to explain their work job and what they consider when performing appraisals. On the other hand, pay attention to the questions they as you about the assignment. You would know the sincerity and commitment they have for the project just by the things they want you to tell them.
4. Choose someone who offers full disclosure.
Make sure you choose an appraiser who offers complete disclosure, such as on having a lack of knowledge on the subject property, having performed an appraisal on it over the last three years, and having any interest whatsoever in the said property. Overall, the appraisal should be unbiased, and full disclosure lets you determine whether you are better off choosing another appraiser.
Before you hire a specific commercial appraiser, you need to consider a few more things, including:
> Experience in litigation
Litigation is one possibility that’s impossible to rule out. It is important that the appraiser is available when you need them and can provide support. When necessary, they should be able to defend their work in a court of law.
Appraisers often charge per item or per hour, or they may also collect a flat fee. Avoid anyone who will charge a contingency rate, depending on the final opinion of value. This is actually against the code of ethics of the Uniform Standards of Professional Appraisal Practice (USPAP).
Lastly, before you request a bid from an appraiser, they have to know whether the subject property is vacant, leased or owner-occupied. As well, they have to ask what the appraisal is for. This allows them to know the necessary property rights to appraise and also to analyze the scope of the job when they provide an appropriate bid.